PurposeBased on institutional theory, this study aims to analyze the influencing mechanisms of the institutional environment in the digital context on technology entrepreneurship.Design/methodology/approachUsing data from the Global Entrepreneurship Monitor, World Bank and World Economic Forum, this study builds a multilevel database covering 79 countries and 97,146 individuals from 2013 to 2017. A mixed-effects logistic regression model with the fixed part and random part was chosen to test the hypotheses in this study. The mixed-effects logistic regression model used in this study includes a random intercept with random effects at the country level, while the robustness test considers a more complex two-level model with a random intercept plus random slope.FindingsThe findings indicate that different dimensions of the institutional environment in the digital context have different effects on individual technology entrepreneurship. The analysis shows that exposure to digital networks and innovative culture positively influences technology entrepreneurship. However, intellectual property rights protection has a negative impact on technology entrepreneurship. Furthermore, the government digitalization has different effects on above relationships. When a government digitalization is higher, there will be a weaker positive relationship between exposure to digital networks and technology entrepreneurship. When a government digitalization is higher, there will be a stronger positive relationship between innovative culture and technology entrepreneurship. When a government digitalization is higher, there will be a weaker negative relationship between Intellectual property rights protection and technology entrepreneurship. Finally, the effect of innovative culture on technology entrepreneurship in the digital context is stronger for females than for males.Originality/valueThe aforementioned findings contribute to a better understanding of the theoretical logic underlying digital factors affecting the institutional environment and technology entrepreneurship and act as a reference for the country in terms of raising its scientific and technological levels and promoting economic structure transformation in the digital era.